KAR AUCTION SERVICES Reports Fourth Quarter Financial Results for FY2022

Earnings Overview

KAR AUCTION SERVICES ($NYSE:KAR) reported its financial results for the fourth quarter of FY2022 ending December 31, 2022, on February 21, 2023. Total revenue increased by 627.5% year-over-year to USD 37.1 million, while net income decreased by 32.1% compared to the prior year, amounting to USD 372.8 million.

Transcripts Simplified

KAR Global generated $373 million in revenue in Q4, a 4% increase compared to the same quarter of the prior year. Total gross profit was $171 million, an increase of 4% from Q4 of the prior year. KAR sold 289,000 vehicles in the quarter, with purchase vehicle revenue representing 12% of total revenue. Finance segment revenue was $101 million, an increase of 27% compared to Q4 of the prior year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for KAR. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for KAR. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for KAR. More…

Key Ratios Snapshot

Some of the financial key ratios for KAR are shown below. More…

Price History

The stock opened at $14.4, ended the day at $14.1 and closed 3.0% lower compared to its previous closing price of 14.6. The company also continued to expand its presence in the United States, opening two new centers in Texas and Florida during the quarter. The company’s strong performance is a testament to its strong business strategy and ability to adapt to changing market conditions. The company is well-positioned to continue its growth trajectory and capitalize on future opportunities. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of KAR AUCTION SERVICES’s fundamentals. After analyzing the financial and business aspects, our Risk Rating reveals that KAR AUCTION SERVICES is a medium risk investment. Additionally, our analysis has also revealed 2 risk warnings in the income sheet and balance sheet. If you are interested in learning more, we invite you to register with us to find out more information. More…

Peers

The company operates through three segments: ADESA, Inc, Insurance Auto Auctions, Inc, and Capital One Auto Finance. KAR Auction Services was founded in 2002 and is headquartered in Carmel, Indiana. Some of KAR Auction Services’ competitors include NowAuto Inc, America’s Car-Mart Inc, and Peter Warren Automotive Holdings Ltd.

– NowAuto Inc ($OTCPK:NWAU)

America’s Car-Mart, Inc. is engaged in the operation of used automobile dealerships in the United States. The company operates through two segments, Automotive Sales and Automotive Finance. It offers financing for the purchase of vehicles to customers who are unable to obtain traditional financing from banks or other lending institutions. The company also sells vehicles on consignment for customers. As of April 30, 2018, it operated 138 dealerships in 11 states. America’s Car-Mart, Inc. was founded in 1981 and is headquartered in Bentonville, Arkansas.

– America’s Car-Mart Inc ($NASDAQ:CRMT)

Warren Automotive Holdings Ltd is a car dealership company. It is headquartered in Sydney, Australia. The company has a market capitalization of 481.38 million as of 2022 and a return on equity of 11.46%. The company operates a chain of car dealerships across Australia. It offers a range of new and used cars, finance, insurance, and after-sales services.

Summary

KAR AUCTION SERVICES reported its financial results for the fourth quarter of FY2022 on February 21, 2023. Total revenue was up 627.5% year-over-year, however net income decreased 32.1%. In response, the stock price dropped on the same day.

As a result, investors should consider the recent earnings report when making decisions regarding investing in KAR AUCTION SERVICES. It is important to review both revenue growth and the net income, to understand the company’s financial performance and outlook for the future.